In this 7-part series, OpenMarkets is pleased to share key negotiation strategies that are directly applicable for supply chain leaders when purchasing equipment.

Topic 6: Multiparty Negotiations

When three or more people are negotiating on behalf of themselves or others, you are dealing with a multiparty negotiation situation. This complicates the negotiation, as more people means more incentive structures and more information shared.

That said, new structures are created that may benefit all parties.

There are numerous benefits to introducing additional parties to a negotiation table. The first benefit is when the 3rd party is an expert. This happens in court situations when either side brings in an expert witness who knows something well that can attest to a data or fact pattern. Second, if you wish to avoid direct confrontation with the buyer/seller. A realtor does this for you when you are negotiating with a builder. Third, if you wish to maintain a long-term relationship with the counterparty and anticipate an acrimonious negotiation. This is true with job requirement when you are negotiating a salary with HR, not with your future boss. Dealing with a future employer directly on a sensitive information like salary could impact relationships long-term, that’s why you introduce somebody like HR.

While there are countless creative situations when a 3rd party may benefit a negotiation. As supply chain managers and suppliers, one must carefully consider these benefits before introducing a 3rd party into discussions. Supply chain managers can use 3rd parties as intermediaries to receive quotes and get product information. 3rd parties can also provide benchmarking information that may help them make a good purchase decision. Suppliers likewise use 3rd parties for additional sales channel, lower the cost of sale, and even explore new avenues for growth.

If using a 3rd party for equipment purchasing strategy is something your team does not fully employ, try the OpenMarkets Exchange to get your next transaction. The ability to receive multiple quotes for equipment needs and connect with multiple supply chain buyers at the touch of a button will streamline your negotiation practices and empower you to get the best value for your dollar.

Tom leads a range of core functions for OpenMarkets, including strategic partnerships and marketing. Prior to OpenMarkets, Tom served as a senior communications director for... More about Tom Derrick